Core Viewpoint - The inclusion of SanDisk in the S&P 500 index indicates strong market recognition of the storage chip industry driven by AI technology, potentially leading to further increases in its stock price due to passive fund buying [1][4]. Group 1: Company Performance - SanDisk's stock price has surged over four times since its spin-off from Western Digital, closing at $226.96, with a single-day increase of 13.3% and an after-hours rise to $245.25 [2][7]. - The company has experienced significant growth in market demand for its flash memory and chip products, which are widely used in consumer electronics and data centers [7][8]. Group 2: Market Dynamics - SanDisk, previously the largest company in the S&P SmallCap 600 index with a market capitalization close to $30 billion, has made a rare leap directly to the S&P 500 index, reflecting a substantial change in its fundamentals [5][6]. - The strong market demand has driven rapid growth in the company's market value, qualifying it for inclusion in the S&P 500 index, which will officially take place on November 28 [8].

Core Viewpoint - SanDisk, a storage chip manufacturer, will be added to the S&P 500 index on November 28, replacing Omnicom Group, marking a rare direct leap from the S&P SmallCap 600 index to the S&P 500 index due to its nearly $30 billion market capitalization [1][4]. Group 1: Company Performance - Since its spin-off from Western Digital in February, SanDisk's stock price has surged over four times, closing at $226.96 on the last trading day, with a single-day increase of 13.3% and an after-hours rise of 8% to $245.25 [1][4]. - The strong demand for flash memory and chip products has significantly driven the company's performance, benefiting from applications in consumer electronics and data centers [4]. Group 2: Market Impact - The inclusion of SanDisk in the S&P 500 will compel passive funds tracking the index to purchase its stock, potentially further increasing its share price [3][4]. - This adjustment reflects the overall improvement in the storage chip industry's market recognition, particularly in the context of an AI-driven technology cycle [3][4].